Munich Re headquarters. Source: Munich Re
Munich Re expects a profit of EUR 200m in the third quarter of 2020 (Q3 2019: EUR 865m). At the same time, the Munich reinsurer recorded a loss burden from the corona pandemic of around EUR 800 million.
These relate to different business lines, including the insurance of major events, other areas of property and casualty insurance, as well as life and health insurance, Munich Re continues to report.
As early as September, the group announced that it would initially stop the sale of property and casualty insurance policies with which customers can insure themselves against the consequences of pandemics. “We are currently examining whether we will be able to offer new contracts with pandemic protection in property and casualty insurance in the future. That is under revision ”, explained the board Torsten Jeworrek.
“We are pausing for the moment, for example with new default insurance for events. However, there are individual segments such as life or health in which we have to offer appropriate protection and continue to do so. “
Torsten Jeworrek, Member of the Board of Munich Re
In addition, Munich Re recorded an above-average burden from “non-Covid 19 major losses” in the third quarter. According to the reinsurer, these include high losses from natural disasters (in particular a series of severe cyclones and forest fires in the USA) and man-made damage (especially the explosion in the port of Beirut). However, the reinsurer did not name a specific loss amount.
As planned, Munich Re plans to publish the detailed quarterly results on November 5, 2020. In the first half of the year, Munich Re posted charges of around EUR 1.5 billion as a result of the crisis. The cancellation of major events hit the office particularly hard. Damage also occurs in liability, travel and credit insurance. The reinsurer is also calling for a state risk pool to be able to insure the risks of future pandemics.
Author: VW editorial team
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